The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Trevali Discovers New High-Grade Mineralized Zones at Santander Mine

6.7 metres of 12.95% Zn, 0.74% Pb, 2.47 oz/t Ag and 4.47 metres of 7.45% Zn, 2.85% Pb, 6.30 oz/t Ag

Wednesday, June 04, 2014

Trevali Discovers New High-Grade Mineralized Zones at Santander Mine

08:53 EDT Wednesday, June 04, 2014

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 4, 2014) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(LMA:TV)(OTCQX:TREVF)(FRANKFURT:4TI) announces that two new zones of high-grade polymetallic mineralization have been discovered adjacent to the Magistral Central deposit at its Santander Mine in Peru. The new zones, Fatima North and Fatima South, occur in the footwall of (or behind) the principal Magistral Central deposit and remain open for expansion to the East and at depth.

The Fatima Zones trend sub-perpendicular (approx. 80-85°) to the main Magistral Central deposit, and similar to the Rosa Zone are thought to represent a later phase of high-grade replacement mineralization along a set of roughly East-West trending feeder structures/veins (Figures 1 & 2).

To view the first figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/trevf06031.pdf

Figure 1: 3D View showing Fatima Zones, adjacent to Magistral Central Deposit, with channel samples (CH) location; MC level 4440-3

Underground channel sampling results across the zones are illustrated and tabulated below (Figure 2 & Table 1).

To view the second figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/trevf06032.pdf

Figure 2: Underground Plan View showing Fatima Zone with channel samples assays.

Located in the footwall and within / subjacent to the existing underground development, the Fatima zone is readily accessible for incorporation into the Santander mine plan. The Company has mobilized an underground drill rig to site and it is about to commence a 4-5,000 metre drill campaign to further explore and define the newly discovered Fatima and Rosa zones (Figure 3). In addition the drilling will provide deeper, in-fill definition information on the deposits in order to facilitate long range mine-planning.

Channel CH-1311 Fatima North
Width (m) Zn (%) Pb (%) Ag (oz/ton)
1.37 12.76 0.76 2.17
1.51 15.66 0.70 0.96
0.98 15.45 1.49 5.99
1.09 13.82 0.24 1.75
0.54 4.50 1.47 4.57
1.20 10.75 0.30 1.56
Total channel width and average grade
6.69 m 12.95% Zn 0.74% Pb 2.47 oz/ton Ag
Channel CH-1310 Fatima North
Width (m) Zn (%) Pb (%) Ag (oz/ton)
0.97 9.65 0.81 2.23
0.84 9.44 0.63 3.21
1.41 14.60 0.49 3.04
Total channel width and average grade
3.22 m 11.76% Zn 0.62% Pb 2.84 oz/ton Ag
Channel CH-1251 Fatima South
Width (m) Zn (%) Pb (%) Ag (oz/ton)
1.09 5.59 3.45 3.97
1.38 11.03 2.46 8.41
0.85 7.78 3.24 6.44
1.15 4.68 2.46 5.85
Total channel width and average grade
4.47m 7.45% Zn 2. 85% Pb 6.30 oz/ton Ag

Table 1: Summary of Rock Channel Sample Assay Results

Note: Channel samples are cut perpendicular to the strike of mineralized zone and therefore reported intervals represent the true width of base metal mineralization exposed in the drift.

To view the third figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/trevf06033.pdf

Figure 3: 3D view showing Magistral North (MN), Magistral Central (MC), Magistral South (MS) deposits, Rosa and Fatima zones (illustrative only) at the Santander Mine in Peru.

EXPLORATION MODEL

The successful discovery of the Rosa and Fatima zones coupled with their interpretation to represent a later phase of high-grade feeder mineralization is indicative of a large-to-very-large, long-lived Carbonate Replacement Deposit ("CRD") system at Santander.

Of note is the fact that the Rosa and Fatima zones trend towards the Company's Puajanca South deposit and Puajanca North prospect where sampling has returned bonanza grade silver mineralization of up to 1.2 metres wide grading 39.9 oz/ton (1,369 g/t) Ag, 83% Pb and 18.4% Zn within an aggregate of 1.45 km of North East to East-West trending veining that averages 1 metre wide and returned 5.3 oz/ton silver (182.7 g/t), 14.3% lead and 2.0% zinc (Figure 4). Metal ratios (lead values significantly higher than zinc), mineral system analysis and alteration assemblages in the area are interpreted to indicate that structures in the Puajanca zone are located in the uppermost portions of a 'fertile' and well preserved polymetallic mineralizing system (see January 5, 2011 news release TRC-NR11-01 for details).

All mineralization to date is spatially associated with a significant geophysical anomaly interpreted to represent a large magmatic system which drives the high-level CRD mineralization discovered to date on the property (Figure 4). These most recent discoveries of Rosa and Fatima further highlight the overall exploration potential of the Santander property and of the Magistral - Puajanca corridor in particular (Figure 4).

To view the fourth figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/trevf06034.pdf

Figure 4. Analytical Signal Map with fault traces and location of the Magistral deposits and Puajanca Zone (1:10,000 scale)

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and Daniel Marinov, P.Geo, Trevali's VP Exploration, are qualified persons as defined by NI 43-101, have supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Marinov is responsible for all aspects of the work, including the quality control/quality assurance programs. Dr. Cruise is not independent of the Company, as he is an officer, director and shareholder. Mr. Marinov is not independent of the Company as he is an officer and shareholder. Channel samples were processed and assayed in the Santander mine onsite laboratory. Zinc, lead and silver, assays were obtained by Aqua-Regia dissolution followed by Atomic Absorption measurement. Values of lead and zinc over 15% are assayed by volumetric method. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Trevali personnel in order to independently assess analytical accuracy. The onsite laboratory is outsourced and managed by SGS-Peru personnel. SGS-Peru's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Finally, representative blind duplicate samples are routinely forwarded to an ISO compliant third party laboratory for external quality control.

ABOUT TREVALI MINING CORPORATION

Trevali is a zinc-focused base metals mining company with operations in Peru and Canada.

In Peru, the Company is actively operating its wholly-owned Santander underground zinc-lead-silver mine and 2,000-tonne-per-day metallurgical plant, and producing zinc and lead-silver concentrates.

In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat polymetallic deposit all located in the Bathurst Mining Camp of northern New Brunswick. Initial trial production from the Halfmile underground mine was successfully undertaken in 2012 and the Company anticipates commencing operations at its 3,000-tonne-per-day Caribou Mill Complex in 2015.

All of the Company's deposits remain open for expansion.

The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). For further details on Trevali, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

On Behalf of the Board of Directors of

TREVALI MINING CORPORATION

Mark D. Cruise, President

This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the accuracy of estimated mineral reserves and resources, anticipated results of future exploration, and forecast future metal prices, anticipated results of future electrical sales and expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets (such as the Peruvian sol versus the U.S. dollar); risks related to the technological and operational nature of the Company's business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining,; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company's ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements.

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

Trevali's production plans at Caribou-Halfmile-Stratmat and Santander are based only on Indicated and Inferred Mineral Resources and not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the production plans and Preliminary Economic Assessment (PEA) will be realized. Additionally where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

We advise US investors that while the terms "measured resources", "indicated resources" and "inferred resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize these terms. US investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into reserves.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.

The TSX has not approved or disapproved of the contents of this news release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Trevali Mining Corporation
Steve Stakiw
Vice President, Investor Relations and
Corporate Communications
(604) 488-1661 / Direct: (604) 638-5623
sstakiw@trevali.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections